October 16, 2017
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The White House released its analysis of the GOP tax reform plan Monday, touting corporate cuts that administration officials estimate would eventually increase the average household income by $4,000 per year. President Trump has signaled a willingness to be flexible on the terms of the final tax legislation, although he's been firm on cutting corporate taxes to 20 percent, down from 35 percent, The Hill reports.

"More assets like machines let workers produce more, and when workers can produce more, businesses can afford to pay their workers more," explained White House Council of Economic Advisers chairman Kevin Hassett.

Democrats have pushed back on the report, with Senate Minority Leader Chuck Schumer (D-N.Y.) claiming the CEA used "fake math" to reach its conclusions. "This deliberate manipulation of numbers and facts could lead to messing up the good economy the president inherited from President Obama and hurting the middle class," Schumer argued.

The nonpartisan Tax Policy Center has weighed in to say that "overall benefits of lower corporate taxes tilt heavily toward those with higher incomes," Reuters reports. "It said middle-income taxpayers would receive less than 10 percent of the benefit of a corporate rate cut while the top 20 percent would receive about 70 percent. The top 1 percent would see about one-third of the benefits and the top 0.1 percent would get about one-fifth, the center has said."

Trump blasted Democratic opposition on Twitter: "The Democrats only want to increase taxes and obstruct," he wrote. "That's all they are good at!" Jeva Lange

September 29, 2017
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Approximately 30 percent of taxpayers earning between $50,000 and $150,000 a year will see their taxes increase under the Republican tax proposal, the nonpartisan Urban-Brookings Tax Policy Center reported Friday. And while most Americans making between $150,000 and $300,000 will also see tax increases, the top one percent — earning more than $900,000 a year — will see taxes drop by an average of $200,000, The Washington Post reports.

President Trump has championed the Republican plan as being a major relief for the middle class, although 1 in 4 households would see their taxes go up. Additionally, The New York Times reports that Trump (or his heirs) would personally gain $1.1 billion if the proposal was implemented due in large part to the repeal of the estate tax.

The Tax Policy Center also concluded that the Republican plan would increase the deficit by $2.4 trillion over the next 10 years. "Republicans believe they will offset that lost revenue with increased economic growth prompted by the tax plan," The Washington Post writes. But analysts fret that if "economic growth projected by Republicans fails to materialize," then the massive cuts could "balloon the federal deficit and debt," Reuters reports. A handful of Republicans have already spoken out against the proposal: "The way we handle our finances, we as a nation are the greatest threat to our nation," Sen. Bob Corker (R-Tenn.) said. Jeva Lange

September 27, 2017

President Trump introduced his tax reform plan Wednesday, telling a crowd at the Indiana Fair Grounds Farm Bureau Building in Indianapolis that "Americans waste so much money ... each year to comply with our ridiculously complex tax code." He added that "we are making our tax system simple again. We are simplifying our tax system."

The plan — which proposes shrinking the seven individual tax brackets down to three at 12 percent, 25 percent, and 35 percent — is being promoted as a win for the middle class because it will also double the standard deduction for all taxpayers. Critics, though, point out that it raises taxes on the lowest income bracket from 10 percent to 12 percent and lowers taxes for the wealthiest Americans, from 39.6 percent to 35 percent. Trump, though, insisted "it's not good for me, believe me."

The tax reform plan also cuts business taxes down to 20 percent from 35 percent: "We need Washington to promote American jobs instead of obstructing them," Trump said, adding that the plan would mean America can start "winning again." Watch some of his comments below. Jeva Lange

September 27, 2017

Republicans unveiled their tax reform plan Wednesday, with Sen. Tim Scott (R-S.C.) even giving the proposal its own hashtag: #KeepYoMoney.

The reform technically raises the taxes of the lowest income bracket and lowers the taxes of the highest income bracket, although the plan is being sold as a win for the middle class because it will also double the standard deduction for all taxpayers: "In the end, even the lowest rates get a tax cut," explained Rep. Jim Renacci (R-Ohio). Additionally, Republicans have promised to "make America the jobs magnet of the world" by cutting the federal tax on corporate profits to 20 percent, down from 35 percent.

"It's about growing our economy so the jobs of the future are created and manifested here at home," Scott explained Wednesday. "If I could say it as simple as possible, I would say that this tax reform conversation is about hashtag 'keep yo money.'"

Not everyone agrees the reforms would work out as Scott suggests. Read why cutting the corporate tax rate may not actually help U.S. workers at The Week, and listen to Scott below. Jeva Lange

September 27, 2017
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President Trump will announce his intention to cut tax rates for businesses and the wealthy and raise the lowest individual tax rate in a speech in Indianapolis on Wednesday, Reuters reports. The plan will be promoted as a win for the middle class because it will also double the standard deduction for all taxpayers: "In the end, even the lowest rates get a tax cut," explained Rep. Jim Renacci (R-Ohio).

Still, analysts fret that if "economic growth projected by Republicans fails to materialize," then massive tax cuts could "balloon the federal deficit and debt," Reuters writes. And while the president called for bipartisan reform on Tuesday, "Trump asked for Democrats to jump on the caboose after the tax train has already left the station," said Rep. Lloyd Doggett (D-Texas), who suggested many in his party would not be willing to get on board with the plan.

In fact, a mere 7 percent of Democrats back Trump's plan compared to 60 percent of Republicans and 29 percent of independents, a Washington Post/ABC News poll released Tuesday found. In aggregate, just 28 percent of Americans support the plan. Read more about if cutting the corporate tax rate would help U.S. workers, like Trump claims it would, here at The Week. Jeva Lange

September 26, 2017
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The GOP plans to raise the lowest individual tax rate from 10 percent to 12 percent while dropping the tax rate for the wealthiest Americans from 39.6 percent to 35 percent, Axios reports, based on conversations with five senior Republicans.

The White House intends to sell the plan as a "tax cut" for the middle class by doubling the standard deduction, which will leave many people paying no taxes: "The standard deduction would almost double to $12,000 for a single filer and $24,000 for married couples, meaning Trump can accurately argue that many more low-income earners would pay no tax under his plan," Axios writes. The seven tax brackets would be collapsed down to three.

"We have a tax plan that is totally finalized," Trump boasted Sunday. "I think it'll be terrific. I think it's going to go through." While Trump will introduce the proposal in Indiana on Wednesday, he is expected to leave details intentionally vague so congressional tax-writing committees have the flexibility to negotiate and maneuver. Read the full scoop at Axios. Jeva Lange

August 30, 2017

President Trump's tax overhaul speech in Missouri on Wednesday sparked a massive tweet storm from a furious Ann Coulter. "This is the worst, most tone-deaf speech [Trump] has ever given," she ranted. "Jeb! had better ideas."

Coulter has taken to Twitter to vent her frustrations about Trump before, especially when the president skimps on his wall-building rhetoric. "Tax cuts are a 2d term issue," she tweeted. "1st term: BUILD THE WALL, End DACA, Deport Illegals, No Refugees, No Muslims, [immigrant] Moratorium. SAVE USA!"

She didn't stop there:

Read more about Trump's tax overhaul speech here at The Week. Jeva Lange

August 30, 2017
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President Trump will pitch Americans on his tax overhaul plan Wednesday in Springfield, Missouri, in a speech that is "light on substance, heavy on populism," Axios writes.

Trump will propose "unrigging" the economy and ending "the special interest loopholes that have only benefited the wealthy and powerful few," Politico reports. When asked by The Wall Street Journal how Trump's promises could be taken seriously when his plans have so far been assessed as "a gift to the wealthiest Americans," one aide replied: "How I would look at this, from an American worker's perspective, it's basically a 'made in America tax.'"

Trump will label it "a tax code that really allows all Americans to have access to the American dream." "Every American worker will get a pay raise by getting to keep more of their paychecks," an aide explained to Politico. "We're going to win again by slashing the business tax rate and making our companies competitive again." Jeva Lange

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